https://www.taxtmi.com/caselaws?id=8356 Interest on borrowed capital used for business was deductible once the borrowing for business purposes was established under section 10(2)(iii) of the Income-tax Act, 1922. The fact that the assessee charged a lower rate of interest on its own advances, including to connected persons, did not justify reducing the statutory deduction for interest actually paid on the borrowed funds. The partial disallowance was therefore not warranted, and the issue was answered in favour of the assessee. en-us Mon, 24 Jan 1972 00:00:00 +0530 Fri, 10 Apr 2009 16:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8356 Interest on borrowed capital used for business was deductible once the borrowing for business purposes was established under section 10(2)(iii) of the Income-tax Act, 1922. The fact that the assessee charged a lower rate of interest on its own advances, including to connected persons, did not justify reducing the statutory deduction for interest actually paid on the borrowed funds. The partial disallowance was therefore not warranted, and the issue was answered in favour of the assessee. Case-Laws Income Tax Mon, 24 Jan 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8356